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PRAGUE, July 28 (Reuters) - Skoda Auto, a fully-owned unit of Germany's Volkswagen and the biggest Czech export earner, said on Monday its first-half net profit dropped 33 percent year-on-year to 977 million crowns ($34.97 million).
Sales dipped to 76.08 billion crowns from 77.04 billion a year ago and unit car sales fell to 226,266 from 228,386 last year, Skoda said in a statement.
"The forecast economic recovery has yet to come but there are some visible signals of an improvement," Skoda said, adding however its markets were unlikely to stage any significant recovery in the second half of the year.
Exports to western Europe, which account for 54 percent of the company's sales, fell 4.6 percent from a year ago. Sales in Central and Eastern Europe, excluding those of the domestic Czech market, grew 10.3 percent.
Domestic sales dropped eight percent.
The largest Czech company in terms of revenues maintained its profit outlook, saying this year's pre-tax profit should stay in line with 2.49 billion crowns in 2002 but added this can be achieved only through unspecified cost-cutting measures.
"To achieve this (profit target) we have to successfully carry out cost-cutting measures which will eliminate the persisting market risks," the car maker said.
Skoda had a pre-tax profit of 1.47 billion crowns in the first half, while cash flow fell 7.6 percent to 6.2 billion.